Credo Technology Q4 revenue jumps but outlook fails to impress investors
Credo Technology Q4 revenue jumps but outlook fails to impress investors
Overview
Connectivity solutions provider's Q4 revenue rose 157% yr/yr, beating analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Adjusted net income for Q4 beat consensus
Outlook
Credo expects Q1 revenue between $465 mln and $475 mln
Company sees Q1 GAAP gross margin of 66.9% to 68.9%
Credo expects Q1 non-GAAP operating expenses between $86 mln and $90 mln
Result Drivers
VERTICALLY INTEGRATED APPROACH - Co said its approach enables customers to accelerate cluster time-to-stability, maximize GPU utilization, improve network reliability, and reduce infrastructure power and operating costs
Company press release: ID:nBw2Hy2hva
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $437 mln | $432.05 mln (14 Analysts) |
Q4 Adjusted EPS | Beat | $1.16 | $1.03 (14 Analysts) |
Q4 Adjusted Net Income | Beat | $226.70 mln | $202.67 mln (13 Analysts) |
Q4 Net Income |
| $169.10 mln |
|
Q4 Gross Margin |
| 68.20% |
|
Q4 Adjusted Gross Margin |
| 68.30% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Credo Technology Group Holding Ltd is $210.00, about 11% below its May 29 closing price of $236.03
The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 27 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)